kent britton|financial controller · 2019-03-21 · longest cable-stayed bridge in na 100-year...
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COPASKent Britton|Financial Controller
September 20, 2018
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The Port of Corpus Christi
▪ Breakwater was constructed following the storm of 1919
▪ Port of Corpus Christi Founded in 1926
▪ Moving Texas cotton was original focus
▪ 1930s - First refining company, Taylor refining Co., began operations
▪ 1959 – completion of the harbor bridge
▪ Efforts to deepen and widen channel consistent throughout history
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THE ENERGY
PORT OF THE AMERICAS
▪ Independent political district of
the State of Texas, governed by
seven commissioners
▪ Global energy hub and the
Economic centerpiece of South
Texas
▪ A landowner, a land developer,
and a landlord
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Job Creation &Economic Growth
Educational &Workforce
Development
Safety & CorporateSocial Responsibility
Sustainability & Environmental
Stewardship
Port Corpus Christi delivers excellence and
demands the same from its partners.
Pillars of Success
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Po r t C o r p u s C h r i s t i
• The #1 US Crude Oil Export Port
• 4th Largest Port in the US
(>100M Tons)
• $150B in Annual Economic
Output
• $100M Goods Value Movement
Per Day
• Greater than $95M Annual Port
Revenues
• $724.8M Total Assets
2017 By the Numbers
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$50 Billion
Port Industry Capital Investments
($10 Billion Foreign Direct Investment)
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Po r t C o r p u s C h r i s t i
▪ Intracoastal Waterway Barge Access (M-69)
▪ Expanding Highway System (I-37 & I-69)
▪ 36 Miles of Ship Channel (-47’ -54’)
▪ 60 Miles of Railroad Tracks (UP, KCS, BNSF)
▪ Pipelines, Terminals and Storage Tanks
▪ New Large Ship Docks
▪ Liquid Bulk, Dry Bulk, & Breakbulk
Intermodal Connectivity
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P R E S E N TAT I O N T E M P L AT E
• Newly developed 25 acres at Rincon West Yard for
Heavy Haul Cargo
• Close proximity to Northside Cargo Dock 9
• Potential for onsite rail access
• Foreign Trade Zone #122
• Future expansion under development
P o r t o f C o r p u s C h r i s t i
Rincon Industrial Park Expansion
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Po r t C o r p u s C h r i s t i
▪ Purchased in 2001
▪ Site of major industrial interest and
development
▪ Beneficial use site (wildlife mitigation
habitat)
La Quinta Trade Gateway
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Po r t C o r p u s C h r i s t i
▪ Bulk Dock 1 and 2
▪ Gantry Crane and Ship Unloader
▪ Truck and Rail Dump
▪ Tenant Pad Operations (Koch, Citgo, Valero)
▪ Public Pad Operations
▪ 6 NSRs, Multiple PBRs
Bulk Terminal
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P R E S E N TAT I O N T E M P L AT E
▪ Over 15,000 tons of wind
turbine components
moved through Aug2018
Wind Cargoes
P o r t o f C o r p u s C h r i s t i
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Po r t C o r p u s C h r i s t i
▪ Major New Port Customers
▪ Maverick Terminal
(Howard Energy)
▪ Gulf Coast Growth Ventures
(ExxonMobil and SABIC Joint
Venture)
▪ South Texas Cement
(GCCM Holdings)
2016-2017 Growth
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ENERGY EXPORTS
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Crude Oil Outbound/Exports 2016-2018 (BPD)
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Barr
els
Per
Day (
BP
D)
PCC Crude Oil Outbound/Exports 2016-2018 (Barrels Per Day-BPD)
Domestic Exports
73%
49%
48%
64%55%
64%49%
51%
44%36%37%
20%
48%
28%
10%
25%
8%
13%23%
2%
11%
62%
73%
68%
Hu
rric
an
eH
arv
ey
Avg Outbound 372,541 BPD
Avg Out 517,699 BPD
2016 Exports 22%
76%
71%
2017 Exports 59%
77%
86%
80%
Avg Out 593,844 BPD
2018 Exports 75%
78%
54%
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U.S. Crude Oil Production by Major Growth Basin (MMb/d)
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New Permian Crude Oil Pipelines
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Export Markets
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CORPUS CHRISTI SHIP CHANNEL DEEPENING & WIDENING PROJECT
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P R E S E N TAT I O N T E M P L AT E
▪ Authorization
▪ Funding
▪ Cost Increases
▪ Economics Update
▪ Budget Eligibility
▪ Partnership Agreement
PROJECT OVERVIEW
P o r t o f C o r p u s C h r i s t i
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Implementation of Channel Improvement Project
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Benefits Achieved
▪ $150 billion in economic activity for the United States
▪ $50 billion in privately-funded industrial projects
▪ Add nearly $35 billion annually in additional goods value
exports
▪ Reduce the current U.S. trade deficit
▪ Over $100 million in annual transportation cost savings
▪ Support Announced pipelines
▪ Energy Dominance
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▪ Study will examine deepening the Entrance Channel from the Gulf of
Mexico through Harbor Island to LaQuinta Junction
▪ Deepen to between 75 and 85 feet MLLW to allow fully loaded VLCCs
▪ Better prepare Port for long-term future for all commodities
Channel Deepening Study
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P R E S E N TAT I O N T E M P L AT E Po r t C o r p u s C h r i s t i
▪ Longest cable-stayed bridge in NA
▪ 100-year design life
▪ 205’ air draft clearance
▪ Hillcrest Washington-Coles
Voluntary Acquisition &
Relocation Program
New Harbor Bridge$900M Project, $85M Port Investment
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The Future of Energy Exports
▪ Larger, more efficient vessels
▪ Safer and reduced environmental impacts
▪ Eliminate current reverse lightering operations for crude oil
shipments
▪ Export of LNG to Europe and Asia
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Po r t C o r p u s C h r i s t i
• ISO 14001 Certified since 2007
• Green Marine Certified Port since 2016
(1st Texas Port to Receive this Distinction)
• TCEQ Texas Environmental Excellence Award Winner,
2018
• Reached 1 Million Pounds of Recycled Materials
Milestone, 2017
• Utilizing 100% Renewable Power Supply
• Recognized Leader in Environmental
Management Systems
Environmental Highlights
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Role of Port as Landlord
▪ Previous model was to sell land or issue franchise agreements
▪ Current model is to derive highest and best use
▪ Scarcity of land
▪ No sales, acquire when land is cheap
▪ Long term lease agreements
▪ Use of Port’s capital rather than customers
▪ Generate acceptable IRR, similar to a for profit business
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Financial Accounting
▪ Political Subdivision of the State of Texas
▪ Single Enterprise Fund – we run like a business!
▪ Primary revenue sources – ship movements, land rental
▪ Primary expenses – labor costs, maintenance
▪ 15 person Accounting group, with separate Procurement and
Payroll functions
▪ Annual financial reports can be found at PortofCC.com at
About/Financials
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Financial Accounting – complex issues
▪ Revenue accounting
▪ Complex deals
▪ Up front cash payments
▪ Guaranteed minimum throughputs
▪ Land acquisition as part of Harbor Bridge project
▪ Restrictions on control of land
▪ Valuation dependent on future use
▪ Capitalization of cost of acquisition and site prep
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Debt Financing
▪ Potential capital needs of $750 million over next 10 years
▪ Revenue bonds issues to cover short term capital needs
▪ $110 million in existing revenue bonds from 2015
▪ $215 million raised in two separate bond issuances this
summer
▪ Port generates $50 million in free cash flow annually, and
goal will be to retire debt early
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STAY CONNECTEDPORT CORPUS CHR I ST I
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THANK YOU.QUESTIONS?